Monthly market commentary

Monthly market commentary

Though November started on a positive note with the announcement of a package to deal with , the positivity didn’t last long.

Also See | Monthly market commentary (PDF)

Domestic economic data was also not encouraging with quarterly GDP at 6.9%. Disappointing manufacturing sector growth is what aected GDP the most. Food ination moved lower to 8%, but the overall Wholesale Price Index ination for October remained at a high 9.7%. Index of Industrial Production growth for September was at 1.9% (year-on-year), another sign that industrial activity is suering. In November, domestic equity markets reached two-year lows. Global risk aversion leading to demand for the dollar coupled with India’s scal decit concerns had a severe impact on the rupee, which touched a record low of R52.44 per dollar. Towards the end, both equity markets and the currency recovered but uncertainties remain.

Graphics by Sandeep Bhatnagar/Mint

Compiled by Lisa Pallavi Barbora